Written answer
Pension Provisions
The Minister said trustees must act impartially in the interests of all scheme members, with existing measures enabling pensioner and deferred-member groups to engage with trustees and appeal certain decisions. He opposed mandatory pensioner trustees as inconsistent with trustees’ overall duties, while noting that industrial relations provisions in the 2021 Bill fall under another Department.
399. Deputy Ken O'Flynn asked the Minister for Social Protection his Department's plans to establish equivalent structures (details supplied) to provide occupational pensioners with a collective voice in the governance of occupational pension schemes in the State; and if he will make a statement on the matter. [66808/26]
Comment on this
Pension scheme trustees have duties and responsibilities under the Pension Act 1990, as amended, under trust law and under other relevant legislation. The duties of pension scheme trustees include administering the scheme in accordance with the law and the terms of the trust deed and scheme rules as well as ensuring compliance with the requirements that apply to these schemes. Trustees must act in the best financial interests of all scheme members, whether active, deferred or retired, and must serve all beneficiaries of the scheme impartially. If there is a conflict of interest, then a person's duty as a trustee must take precedence over interests.
Measures were introduced a number of years ago to facilitate engagement between the trustees of a pension scheme and groups representing the interests of pensioner and deferred scheme members. Guidance issued by the Pensions Authority requires the trustees of a pension scheme to notify groups representing the interest of scheme members of proposals by the trustees of a defined benefit pension scheme to issue a direction under section 50 of the Pensions Act to restructure scheme benefits. This affords the representative group an opportunity to make a submission to the trustees of a pension scheme in relation to proposals to restructure scheme benefits.
These changes facilitate engagement between groups representing the interests of pensioner and deferred scheme members and the Pension Authority and the trustees of a pension scheme. Groups representing the interests of pensioners and deferred scheme members also have a right to appeal a section 50 direction by the Pensions Authority to the High Court on a point of law.
More generally, there is no impediment to scheme members, or a representative group for such scheme members, from communicating to the trustees of a scheme in respect of matters pertaining to that scheme.
The Industrial Relations (Provisions in Respect of Pension Entitlements of Retired Workers) Bill 2021 is a Private Members’ Bill which, while including amendments to two sections of the Pensions Act 1990 (‘1990 Act’), is primarily focused on industrial relations legislation and the functions of the Workplace Relations Commission.
The main purpose of the Bill is to provide certain rights and protections to retired persons and their representative associations in relation to industrial relations and trade disputes. As such, the Department of Enterprise, Tourism and Employment, which has overall responsibility for such matters, is the lead Department in relation to the Bill. Providing access to pensioners to the industrial relations processes and the WRC is a matter for the Minister for Enterprise, Tourism and Employment.
In the context of pensions legislation specifically, the Bill seeks to make provision for enhanced representation of retired workers in relation to the administration of certain pension schemes through the mandatory appointment of pensioner trustees. The proposals contained in the Bill to represent one group are inconsistent with the overall duties of pension scheme trustees as already outlined.